Sales of travel insurance are on the rise, due to worldwide outbreaks of disease, threats of terrorism, and natural disasters. There are limitations though. Coverage is very limited by most travelers insurance if the traveler wishes to delay or cancel travel plans out of fear.

Such things as attacks by suicide bombers or or other terrorist acts and wish to cancel your travel plans they probably will not be covered under the travel policy. Should you plan to vacation near the shore and think about canceling your plans due to a typhoon that may or may not hit your vacation location the chances are it will not be reimbursed by the policy. Situations like these aren’t included in a travel insurance policy.

The point of getting travel insurance is to be covered for specific parts of a trip that usually don’t offer reimbursement in case a problem arises. Airline tickets and deposits for hotels can be included on a policy. This could happen when the person with travel insurance has to revise travel plans or not travel at all, or is stuck away from home and expenses for motel and meals are incurred.

Medical services are also covered by insurance should you become ill overseas and need medical evaluations. Insurance coverage is essential when traveling internationally because your medical insurance may not be accepted by the hospitals. However, each of these programs will have certain exclusions.

Most of the catastrophes that cause people to buy travel insurance are not included under the policy. Several policies do not cover terrorism at all. So, you must select your travel insurance wisely.

Even if travel insurance is found and it doesn’t exclude terroristic acts, there could be a provision that it will cover the insured only if there has been a bombing or act of terrorism in the travel area within a month. If a terroristic act in Europe concerns you to the point you will not travel to an adjacent area in that country or to another part of Europe, chances are traveller’s insurance will be of no benefit. Being afraid is not covered under travel insurance.

But fear is the catalyst behind the recent surge in the purchase of travel insurance. Paradoxically, most insurance coverages do not address these type of intangibles in their coverage. These policies will also require you purchase the specific insurance coverage you want (i.e. terrorism) within 15 days of booking your trip, or you will not be covered.

Many insurers did pay out for costs of meals and hotel rooms for insured travelers who were stranded in London during 2006, after the failed plot to blow up planes with liquid explosives occurred. Since no attack took place, people didn’t get their money back if they decided to cancel.

The cost of travel insurance coverage, like any form of insurance, will depend on which areas you want to cover and the price of your trip. The wise shopper can find travel insurance that will provide protection for many things including medical coverage and medical transportation, or even for delayed flight and lost bags. If you don’t want all the extras, you can buy a policy that covers a specific area.

There are some insurers who have begun to offer a ‘cancel for any reason’ policy. If you purchase this type of coverage, your policy will reimburse you 74 percent of the cost of your trip, should you decide not to go. Because this policy offers more leniency, it costs much more than regular travel insurance.

About 17 million travel insurance policies are sold in the U.S. annually. Purchases of travel insurance increased by 100% since the bombings of the World Trade Center in New York in 9-1-2001. Traveling has become more hazardous over the last few years and there has been a rise in flu epidemics and occurrences such as Chernobyl, due to this, sales of travel insurance is projected to continue to increase.

The thing to remember when there’s a major disruption that affects your travel plans, most cruise lines, airlines, and hotels will waive their fees and restrictions for re-booking. In other words, you are protected without buying an insurance policy.